Russia boosts ship to ship oil transfers amid sanctions
Russia is increasing ship to ship oil transfers to Asia. This shift follows sanctions and winter weather that limited ice class tankers at Baltic ports.
Russia has significantly increased its oil product exports via ship-to-ship (STS) transfers as a result of Western sanctions and harsh winter weather. These factors have led to a shortage of suitable tankers available to serve Russian ports, according to market traders and LSEG data. The use of STS transfers allows high-demand ice-class tankers to focus on moving products from domestic ports to larger vessels stationed in the Mediterranean and Atlantic, which then transport the cargo to Asian destinations. This logistical shift helps maintain the flow of energy products as the conflict in Iran continues to disrupt global supplies and drive up prices. Since the European Union implemented a full embargo on Russian refined products in 2023, Asian markets have become the primary destination for these exports. Severe frosts in early 2026 further complicated operations by tightening ice navigation rules in the Baltic Sea. From mid-February, tankers without ice-class certification were barred from Baltic ports, while vessels with Ice1–Ice2 reinforcement were required to use icebreaker services. Shipping data indicates that two tankers loaded with approximately 240,000 tons of naphtha at the Baltic port of Ust-Luga in January conducted STS operations at the Port Said anchorage in Egypt and off the coast of Togo before delivering the feedstock to Singapore. In February, traders began utilizing STS transfer points near Al Hoceima in northern Morocco. During that month, ship-to-ship operations involving naphtha and fuel oil at Al Hoceima and Port Said exceeded 200,000 tons. According to LSEG data, another two tankers loaded in March at Ust-Luga with nearly 95,000 tons of naphtha are currently en route to STS operations near the port of Augusta in Italy. Market sources noted the pressure on logistics: > A scramble to shorten routes to Asia and secure scarce tankers amid an acute shortage of ice-class vessels, compounded by tightening Western sanctions, has forced traders to push more cargoes through STS transfers.
